Does an Increase in Unemployment Income Lead to Longer Unemployment Spells? Evidence Using Danish Unemployment Assistance Data
Danish unemployment assistance depends on age; it increases by 70% when unemployed individuals turn 25. This feature is used to identify the impact of income on the unemployment-to-employment hazard rate. A mixed proportional hazard framework based on a 10% representative Danish registry data set is used. The results indicate that the income effect for females is negative and significant, corresponding to an income elasticity of -0.4. The effect for males is positive but insignificant.
|Date of creation:||10 Oct 2005|
|Date of revision:||10 Oct 2005|
|Contact details of provider:|| Postal: Estonia bld. 13, 15095 Tallinn, ESTONIA|
Web page: http://www.bankofestonia.info
More information through EDIRC
|Order Information:|| Postal: Estonia bld. 13, 15095 Tallinn, ESTONIA|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rosholm, Michael & Toomet, Ott, 2005. "A Search Model of Discouragement," IZA Discussion Papers 1633, Institute for the Study of Labor (IZA).
- Card, David & Levine, Phillip B., 2000.
"Extended benefits and the duration of UI spells: evidence from the New Jersey extended benefit program,"
Journal of Public Economics,
Elsevier, vol. 78(1-2), pages 107-138, October.
- David Card & Phillip B. Levine, 1998. "Extended Benefits and the Duration of UI Spells: Evidence from the New Jersey Extended Benefit Program," NBER Working Papers 6714, National Bureau of Economic Research, Inc.
- Jeffrey Grogger, 2002. "The Behavioral Effects of Welfare Time Limits," American Economic Review, American Economic Association, vol. 92(2), pages 385-389, May.
- Milligan, Kevin & Lemieux, Thomas, 2006.
"Incentive Effects of Social Assistance: A Regression Discontinuity Approach,"
Analytical Studies Branch Research Paper Series
2006280e, Statistics Canada, Analytical Studies Branch.
- Lemieux, Thomas & Milligan, Kevin, 2008. "Incentive effects of social assistance: A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 807-828, February.
- Thomas Lemieux & Kevin Milligan, 2004. "Incentive Effects of Social Assistance: A Regression Discontinuity Approach," NBER Working Papers 10541, National Bureau of Economic Research, Inc.
- Gerard J. van den Berg, 1990.
"Nonstationarity in Job Search Theory,"
Review of Economic Studies,
Oxford University Press, vol. 57(2), pages 255-277.
- Boone, Jan & Sadrieh, Abdolkarim & van Ours, Jan C., 2004.
"Experiments on Unemployment Benefit Sanctions and Job Search Behavior,"
IZA Discussion Papers
1000, Institute for the Study of Labor (IZA).
- Boone, Jan & Sadrieh, Abdolkarim & van Ours, Jan C., 2009. "Experiments on unemployment benefit sanctions and job search behavior," European Economic Review, Elsevier, vol. 53(8), pages 937-951, November.
- Boone, Jan & Sadrieh, Abdolkarim & van Ours, Jan C, 2004. "Experiments on Unemployment Benefit Sanctions and Job Search Behaviour," CEPR Discussion Papers 4298, C.E.P.R. Discussion Papers.
- Boone, J. & Sadrieh, A. & van Ours, J.C., 2004. "Experiments on Unemployment Benefit Sanctions and Job Search Behavior," Discussion Paper 2004-8, Tilburg University, Center for Economic Research.
- Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September.
- Patrick A. Puhani, 2000. "Poland on the dole: The effect of reducing the unemployment benefit entitlement period during transition," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 35-44.
- Addison, John T. & Portugal, Pedro, 2004.
"How Does the Unemployment Insurance System Shape the Time Profile of Jobless Duration?,"
IZA Discussion Papers
978, Institute for the Study of Labor (IZA).
- Addison, John T. & Portugal, Pedro, 2004. "How does the unemployment insurance system shape the time profile of jobless duration?," Economics Letters, Elsevier, vol. 85(2), pages 229-234, November.
- John T. Addison & Pedro Portugal, 2004. "How Does the Unemployment Insurance System Shape the Time Profile of Jobless Duration?," Working Papers w200401, Banco de Portugal, Economics and Research Department.
- Olympia Bover & Manuel Arellano & Samuel Bentolila, 2002.
"Unemployment Duration, Benefit Duration and the Business Cycle,"
Royal Economic Society, vol. 112(479), pages 223-265, April.
- Olympia Bover & Manuel Arellano & Samuel Bentolila, 1996. "Unemployment duration, benefit duration, and the business cycle," Estudios Económicos, Banco de España;Estudios Económicos Homepage, number 57.
- Bover, O. & Arellano, M. & Bentolila, S., 1997. "Unemployment Duration, Benefit Duration, and the Business Cycle," Papers 9717, Centro de Estudios Monetarios Y Financieros-.
- Arellano, Manuel & Bentolila, Samuel & Bover, Olympia, 1998. "Unemployment Duration, Benefit Duration and the Business Cycle," CEPR Discussion Papers 1840, C.E.P.R. Discussion Papers.
- Michael Rosholm & Lars Skipper, 2009.
"Is labour market training a curse for the unemployed? Evidence from a social experiment,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 24(2), pages 338-365, 03.
- Rosholm, Michael & Skipper, Lars, 2003. "Is Labour Market Training a Curse for the Unemployed? Evidence from a Social Experiment," IZA Discussion Papers 716, Institute for the Study of Labor (IZA).
- Bolvig, Iben & Jensen, Peter & Rosholm, Michael, 2003. "The Employment Effects of Active Social Policy," IZA Discussion Papers 736, Institute for the Study of Labor (IZA).
- Elena Stancanelli, 1999. "Unemployment duration and the duration of entitlement to unemployment benefits: an empirical study for Britain," Applied Economics, Taylor & Francis Journals, vol. 31(9), pages 1043-1051.
- Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
- Meyer, Bruce D, 1990.
"Unemployment Insurance and Unemployment Spells,"
Econometric Society, vol. 58(4), pages 757-782, July.
- Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-381, Oct.-Dec..
- Chris Elbers & Geert Ridder, 1982. "True and Spurious Duration Dependence: The Identifiability of the Proportional Hazard Model," Review of Economic Studies, Oxford University Press, vol. 49(3), pages 403-409.
- Brinch,C., 2000. "Identification of structural duration dependence and unobserved heterogeneity with time-varying," Memorandum 20/2000, Oslo University, Department of Economics.
- Zhang, Tao, 2003. "A Monte Carlo study on non-parametric estimation of duration models with unobserved heterogeneity," Memorandum 25/2003, Oslo University, Department of Economics.
- Jaap H. Abbring & Gerard J. van den Berg, 2003. "The identifiability of the mixed proportional hazards competing risks model," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(3), pages 701-710.
- James J. Heckman & Christopher R. Taber, 1994. "Econometric Mixture Models and More General Models for Unobservables in Duration Analysis," NBER Technical Working Papers 0157, National Bureau of Economic Research, Inc.
- Arulampalam, Wiji & Stewart, Mark B, 1995. "The Determinants of Individual Unemployment Durations in an Era of High Unemployment," Economic Journal, Royal Economic Society, vol. 105(429), pages 321-32, March.
- Bratberg, E. & Vaage, K., 2000.
"Spell Durations with Long Unemployment Insurance Periods,"
Norway; Department of Economics, University of Bergen
208, Department of Economics, University of Bergen.
- Bratberg, Espen & Vaage, Kjell, 2000. "Spell durations with long unemployment insurance periods," Labour Economics, Elsevier, vol. 7(2), pages 153-180, March.
- Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
- Moon, Choon-Geol, 1991. "A grouped data semiparametric competing risks model with nonparametric unobserved heterogeneity and mover-stayer structure," Economics Letters, Elsevier, vol. 37(3), pages 279-285, November.
When requesting a correction, please mention this item's handle: RePEc:eea:boewps:wp2005-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peeter Luikmel)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.